Planning Your Company Structure

Definition of Terms

Company Structure - In this online guide we use the term company structure to refer to the hierarchy of your Enterprise or Franchise Head Office, your Divisions and your business Locations. This chapter is applicable only to users of Franchise and Enterprise Edition, because it deals with how to plan, implement then maintain your company structure.

Click to Open... Your Company Structure:

Enterprise Head Office - The highest level in a business hierarchy, that could include multiple Business Locations organized into multiple Divisions.

Divisions - In an Enterprise, business Locations may be organized into Divisions for the purpose of consolidated reporting.

Business Locations - The basic level in the business hierarchy - the individual retail store or shop.

Central Accounting

If you plan on implementing Enterprise Accounts Receivable and Payable you must create and designate a Location as the head office on it's contact card. This location will not have point of sale capabilities but will able to consolidate receivables and payables.  

Planning Divisions

If your company has lots of business Locations, they may be organized into Divisions to enable consolidated financial reporting for groups of business Locations. Here are some examples of how a company could use Divisions effectively:

  1. A nation-wide enterprise could have business Locations organized by geographic area, such as Western, Central, and Eastern.  That company requires financial reporting by geographic area.

  2. A city-wide Franchise operation could have corporate-owned stores as well as franchised business Locations.  This company requires consolidated financial reporting separated by corporate-owned versus franchised business Locations.

  3. A company with many business Locations in a multi-state area could divide responsibility for the Locations under four sales managers.  This company might need consolidated reporting by sales manager.

IMPORTANT: The software allows inventory transfers between the business Locations in a Division.  This could be a factor in how you plan to set up your company structure.  Refer to the Inventory Transfer topic for details.

TIP: Before adding Divisions and business Locations in the software, sketch out your planned business hierarchy in a diagram like the one above, and be certain your accountant agrees with your plans.

Company Structure (6:08)